Moneysense.ca ran an interesting article about downsizing in retirement.
The idea of downsizing during retirement is that you don’t need as much space, so you sell your big house and buy a smaller one. Then you can use the profit to extend or enhance your retirement. Sounds like good plan to me.
The only thing I can think of that might be better than downsizing in retirement is downsizing long before retirement so you can get all the benefits of downsizing and have more years to enjoy it.
In either case, you should take a look at this article and see if downsizing might make financial sense for you. Downsizing: Go small, think big